ADVERTISEMENT
DIY

Kingfisher full-year profits soar amid DIY boom

E-commerce sales soared by 158% in its full-year results, now accounting for 18% of total group sales, up from its 8% share the prior year

Kingfisher has announced that pre-tax profit soared by 44.4% to £786m in the year ended 31 January 2021, following a surge in DIY spending amid the pandemic. 

Retail profit was up 27.4% in the year, which was largely driven by a strong B&Q performance, while total sales rose by 6.8%.

In the same period, e-commerce sales soared by 158%, now accounting for 18% of total group sales, up from its 8% share the prior year. Click and collect sales also rocketed 226%, accounting for 78% of e-commerce sales.

The group notes that before the pandemic, it saw a gradual shift in customer preference towards Do-it-For-Me (‘DIFM’) versus DIY, adding that this shift was linked to new generations of consumers having fewer DIY skills, and a shift in spending priorities. 

However, the pandemic has “favoured the DIY trend”, according to the group, as DIY is “seen as allowing better ‘social distancing’, cheaper, a hobby, and an activity that contributes to wellbeing”. 

Whilst the group is “mindful” of continued uncertainty related to the pandemic, looking ahead, it expects Q1 like-for-like sales for its next financial year to be up 24.2%.

In addition, it expects low double-digit like-for-like sales growth in H1 21/22, but is planning for like-for-like scenarios of -15% to -5% in the second half of the year, adding that H2 is likely to be impacted by strong year-on-year comparables and “uncertainty over the macroeconomic and consumer environment”.

Thierry Garnier, CEO, said: “Kingfisher is coming out of the Covid crisis as a stronger business, with an improved competitive position in all key markets, strong new customer growth and a step change in digital adoption. Current trading remains positive and, while visibility is limited for the year as a whole, we are confident of continued outperformance of our wider markets. 

“The COVID crisis has established new longer-term trends that are clearly supportive for our industry – including more working from home, the renewed importance of the home as a ‘hub’, and the development of a new generation of DIY’ers – and we expect these to endure. With our strategic progress, we are well positioned to capitalise on these new and positive market trends.”

Back to top button

Please disable your ad-blocker to continue

Ads are the primary way in which publishers generate the revenue needed to pay their staff. If we can't serve ads, we can't pay journalists to write the news.